AUS
NZ
UK
CA
USA
IND
Highlights
- The food sector is likely to benefit, with CPI rising 2.1% over the past year, driven by increases in alcohol, tobacco, food, and non-alcoholic beverage prices
- In 1HFY24, SHV’s revenue fell by 1.6% year-over-year to AUD 67.8 million, but EBITDA surged by 115.9% to AUD 18.7 million
- In FY24, underlying NPAT is forecasted to be between AUD 1.5 million and AUD 3 million, while NPAT may reach AUD 2.5 million to AUD 4 million
Select Harvests Limited (ASX:SHV) is an ASX-listed company, engaged in the production of almonds sourced from both company-owned and investor-owned orchards. Additionally, the company handles the processing, packaging, and marketing of various nuts, fruit-based products, and related goods for the Australian retail and industrial markets.
The company is likely to benefit from the growth prospects of the food sector. According to data released by the Australian Bureau of Statistics (ABS) on 30 October 2024, in the 12 months to September 2024, the Consumer Price Index (CPI) grew by 2.1%. Notably, the most significant contributors to the price rise were alcohol and tobacco (up 6.3%), followed by food and non-alcoholic beverages (up 3.3%) and housing (up 1.6%).
During the reported period, prices of food and vegetables jumped by 9.1%, and higher inflation in non-alcoholic beverages and food indicates that companies in this sector are likely to record revenue growth in the September quarter.
Financial performance of SHV in 1HFY24
In the first half of the financial year 2024 (1HFY24), the company recorded nearly 1.6% YoY decrease in its revenue to AUD 67.8 million, impacted by lower crop sales during the period. In contrast, SHV’s EBITDA jumped 115.9% YoY in 1HFY24 to AUD 18.7 million.
During the reported period, net loss after tax decreased to AUD 2.1 million, compared to AUD 96.2 million in 1HFY23.
Outlook
In FY24, underlying NPAT is expected to fall in the range of AUD 1.5 million – AUD 3 million and NPAT is expected to reach AUD 2.5 million – AUD 4 million. Furthermore, the underlying EBIT is expected to range between AUD 17 million – AUD 19 million.
Share performance of SHV
SHV shares closed 1.39% lower at AUD 3.56 apiece on 4 November 2024. In the past one year, SHV’s share price has dropped by almost 7.54%, while in the past six months, it has increased by 6.0%.
52-week high of SHV is AUD 4.53, recorded on 18 September 2024, and 52-week low is AUD 2.669, recorded on 12 January 2024.
SHV Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 04 November 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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